All implementing measures necessary to benefit from the Superbonus 110%, enacted by the so-called Relaunch Decree, have finally been set out by the Ministry of Economic Development and by the Italian Tax Authorities.

On 18 July 2020, Law no. 77/2020 was published in the Official Gazette, converting into law the Law Decree no. 34 of May 19, 2020, containing urgent measures on health, support for work and the economy, as well as social policies related to the COVID-19 sanitary emergency (the "Relaunch Decree").

Among the several measures set out by Relaunch Decree, one of the most significant is the so-called "Superbonus 110%" – as per art. 119 – providing, in favour of the taxpayer carrying out certain renovation works between 1 July 2020 and 31 December 2021 (i.e. works that increase the energy efficiency of existing buildings, specific anti-seismic works and other interventions carried out together with the previous ones), a deduction from income taxes for an amount equal to 110% of the expenses incurred by the same, available in 5 equal annual instalments.

Subjects entitled to the tax benefit are (i) individuals not carrying out business activities, arts or professions, (ii) residential complexes and (iii) other institutions different from commercial entities.

Compared to the previous similar measures adopted by the Italian lawmaker, "Superbonus 110%" provides – under art. 121 – for alternative methods to exploit the tax benefit. In particular, taxpayers entitled to benefit from the above tax deduction may opt to:

1. obtain a 100% discount on the consideration for the construction works by the building company, which the recovers such discount through a tax credit for an amount equal to the original tax deduction, that can be used by the same or assigned to third parties (including banks and financial institutions);

or

2. assign the tax credit corresponding to the tax deduction to third parties (including banks and financial institutions), with the possibility for these latter to further assign the tax credit.

Although the period of validity of "Superbonus 110%" started on 1 July 2020, a set of implementing rules, necessary to clarify and define the scope and the specificities of the tax benefit at issue was issued with a slight delay. On 8 August 2020, all implementing rules have finally been published, i.e.:

• the implementing decree by the Ministry of Economic Development;
• the implementing measures by Italian Revenue Agency, which establish, inter alia, the manner of exercise of the options referred to in letters a) and b) above.

Italian Revenue Agency has also issued:

• a guide containing a preliminary analysis of the tax deduction provided by Relaunch Decree;
• Circular No 24/2020 providing for certain useful clarification.

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